Global oil prices may be holding steady, although some market analysts believe that crude oil futures pricing could be vulnerable to correction, especially since crude oil inventory levels in the
US are on the rise.
A recent report by the
US Energy Information Administration indicates the agency expects that in 2017,
US crude oil production will raise by 300,000 barrels per day. The increase in production is tied to an approximately 20 percent jump in oil prices that has taken place in the past two months.
Shifting focus to rig counts, the most recent data from Baker Hughes indicates that for the week ending Jan. 7, the number of rotary rigs drilling for oil was up 4 at 529. There are 13 more rigs targeting oil than last year; year-over-year oil exploration in the U.S. is up 2.5 percent and the weekly average of crude oil spot prices is 53.4 percent higher than last year.
In terms of pricing, offers for
US import J55 ERW OCTG casing from Korea in the
US domestic market is continues to trend at approximately $37.50 cwt. ($827/mt or $750/nt), DDP loaded truck in
US Gulf coast ports; the most commonly heard offer pricing for
US import J55 ERW OCTG casing from Taiwan in the
US domestic market continues to hold in the approximate range of $35.50-$36.50 cwt. ($783-$805/mt or $710-$730/nt), DDP loaded truck in
US Gulf coast ports.
Domestic pricing for J55 ERW OCTG casing is being heard at approximately $41 cwt. ($904/mt or $820/nt), ex-Midwest mill.